Perfect Money perspectivity, a payment system as a whole
Posted by admin on April 10th, 2009In order to understand the current situation in the sphere of electronic commerce as a whole one should understand essence of payment system. Payment system is a set of mechanisms, rules, standards and tools which are used for the exchange of financial values, money between the parties in fulfilling their obligations.
Perfect Money claiming to be the future of electronic payments, should minimize delays in payments and take a small fee for payment transactions. It consists of a number of elements: the payment system participants, financial institutions, funds transfer, and communications between the accounting system; different cash and other instruments, legal framework, contractual relationships.
Participants in the payment system are: a payer, a payee of funds, a payer bank, a payee bank, the center-place where payment instruments are exchanged between banks, a control member which sets rules and methods of payments. Central Bank is usually the control member, an agent for settlements of interbank payments. It develops and puts into action rules of payments, systems controlling cash flow, the audit systems, includes new calculation’s tools in turnover, provides credit resources necessary for a system, oversees the payment system participants etc. Any payment transaction has two sides – the flow of information containing details of payment and the flow of funds, which are always intertwined, but can move in different ways and have a gap in time.
After this brief excursion into the concept of Perfect Money payment system, let’s look how it works in the Internet.
In the first instance to the payment instruments one includes various electronic payment systems to pay for goods and services via the Internet. Clearly, the opportunity to immediately pay for a purchase not only convenient for millions of Internet users, but also greatly increases the turnover of trade because a client, as usual, does not want to waste his/her time and it is more probable that he/she will refuse from buying something than lose ten minutes. Of course, one can try to use a credit card, but it is improbable for several reasons: first, common people are afraid of information disseminated by numerous newspapers and magazines in the pursuit of the facts, that such way of keeping money is rather unsafe. Hackers all around the world spread their nets, and just wait for someone typed in his/her name and credit card number to take hold of this information. However, in reality, today, the possibility that someone will intercept such information (with minimal care for user’s part, of course) is much less likely than a brawl, for example in an office of a bank.
Secondly, it is really necessary to treat with distrust to transfers of personal and banking data to the virtual store, as well as the level of security in the store is lower than for example a bank’s level and a database of credit card numbers can be stolen. Therefore, methods of money transfer without any bank information about oneself to the store are more preferable.
And thirdly, not all shops, stores and services of any kind can accept credit cards.
Fourth reasons are usual problems of credit cards, such as cash write-off from false accounts and refusal from bills’ payment, inability to hold small payments (less than $ 1), while it is such small transactions would be, according to experts, a significant portion of turnover in the information business.
Benefits of Perfect Money payment company for customers and stores are obvious. The explosive growth of number of Internet users has led to a large number of publications, which reports that soon will come such time when the Internet and e-commerce fully replace mass media as a source of information and stores to make purchases.
Tags: credit card, electronic payment, money, money transfer
Thanks for the useful info. It’s so interesting